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Austin new vehicle sales soared last month

Austin new vehicle sales soared last month

In a positive sign for the Austin economy, the area’s sales of new vehicles soared in October, jumping 41 percent over the same month in 2011, according to a new industry survey.

The sales surge is evidence of increased consumer confidence and the Austin area’s continued economic strength, area economists and industry experts said.

October’s 41 percent jump was the biggest single-month sales increase of the year, as well as the most new vehicles sold in a single month this year in the Austin metro area, with 9,830. That compares with 6,975 new vehicles sold in the same month last year, according to data from the Freeman Auto Report, a Dallas-based firm that tracks new-car registrations.

October’s increase comes on the heels of a 16 percent year-over-year sales increase in September. Sales were up just 4.2 percent in August, but had soared 39.3 percent in July, 27.2 percent in June and 15.2 percent in May.

For the year to date, Austin-area auto sales are up 18.1 percent over the same 10-month period in 2011. Austin dealers have sold 88,827 new vehicles this year, up from 75,183 in the same period in 2011, according to the report, which tracked sales in Travis, Williamson, Hays, Bastrop, Burnet, Blanco and Caldwell counties.

“I think what you’re seeing is the result of households re-entering the credit markets,” Kelsey said. “Consumer confidence right now is at a five-year high, and the savings rate for households is trending downward. People are starting to regain confidence in borrowing, which is a function of a strengthening economy, lower unemployment, and the continuation of historically-low interest rates.”

Kelsey said Austin’s ongoing population growth is also likely a factor.

“We haven’t seen much improvement in average wages or disposable income, but the total amount of household income in Austin has grown substantially along with the area’s growing population,” he said.

Michael Marks, executive director of the Austin Automobile Dealers Association, said that when it comes to sales pace, “I couldn’t find anybody across the country that topped us right now.”

“The dealers are feeling quite good about where they are right now; they recognize they are in a wonderful market…right now it’s a fun business to be in,” Marks said. “From a sales tax revenue standpoint, the state is pretty happy with the Austin dealers, I’m sure.”

Austin’s sales jump didn’t follow the rest of the country. Nationally, auto sales fell 1.5 percent in October, the most in more than a year, according to the U.S. Commerce Department. Superstorm Sandy was partly to blame, industry experts say, as the storm’s impact depressed sales in the Northeast.

Sandy hit the East Coast on Oct. 29 and disrupted businesses from North Carolina to Maine. The storm lowered auto sales last month by about 30,000, according to TrueCar.com. Overall, car sales dipped to an annual pace of 14.3 million in October, down from a 14.9 million pace in September.

For Austin consumers, Ford pickups continued to be the most popular vehicle, with 1,154 sold in October, according to Freeman Auto Report. That compares with 917 sold in September and 861 in August, according to the Freeman Auto Report.

Following Ford pickups in popularity were Toyota passenger cars, with 946 sold, Honda cars, with 746 sold, Chevrolet pickups, with 695 sold, and Chevrolet cars, with 625 sold, according to the report.